The Corporate Affairs Commission is primarily in charge of registering businesses in Nigeria. The Companies and Allied Matters Act (CAMA) established the organization. The new e-registration platform established by the Corporate Affairs Commission (CAC) now makes it possible to register a company in Nigeria online.
With the introduction of the Companies and Allied Matters Act (CAMA), the electronic platform for registering companies in Nigeria has been enhanced. Unquestionably, registering with the CAC is the first step in starting a business in Nigeria. The current prerequisites, pertinent information, and procedures for registering a company in Nigeria are listed below.
Key Facts & Requirements for Registering a Company in Nigeria
- When no foreigners will be included in the firm’s membership, only one individual may register a company and serve as both a director and shareholder.
- There must be a minimum of two directors in any situation involving foreigners. A minimum of two people must act as shareholders for the corporation when the shareholders are foreign individuals.
- If a foreign business appoints a minimum of two directors, it is permitted to register a Nigerian subsidiary and be the sole shareholder.
- A private business with solely local directors is not necessary to appoint a secretary at the date of incorporation, but one is required if the company is owned by foreigners or involves foreign participation.
- Every company must have a registered office address in Nigeria at the time of registration.
- A Nigerian company’s director must be older than 18 years old.
- A Nigerian person may register a corporation with any allowed share capital amount; however, a foreign-owned company must be incorporated with at least ten million Naira in authorized share capital.
- The applicant does not need to travel to the agent before the incorporation can be finished when a corporate lawyer or agent is hired for a company registration because the entire value chain can now be performed online.
STEPS FOR REGISTERING A COMPANY IN NIGERIA
It is a simple process, overseen by CAC in their online platform, to register a company in Nigeria. The steps for registering a company in Nigeria are as follows:
- Search Available Company Name.
- Reserve Company Name.
- Complete all statutory forms.
- Pay for filing fees.
- Pay for stamp duty.
- Submit the application for registration and register the company.
- Once approved, the certificate and other incorporation documents can be downloaded online.
Search Available Company Name
A name may not be used if it already exists under another owner or if it contains words that are forbidden, such as “Government,” “Council,” and other similar terms, without the proper permission. The Company Name must be original and unallocated to any other business. You can conduct this search within the Public Search section.
Reserve Company Name
At this point, the suggested name is being registered along with the necessary information, such as the type of company—private company limited by shares, public corporation, etc.
Within 24 hours, the CAC must inform the applicant of the status of their request for name reservation. If the business name reservation is successful, a note of approval with a name availability code will be given.
Register Your Company
After the name has been reserved, the applicant must proceed to fill out the required legal paperwork and pay the required expenses. The applicant must fill out the business’s nature, the company’s specifics, and the specifics of its directors and shareholders in order to complete the registration.
The applicant must enter personal information, including name, date of birth, gender, phone number, form of identification, and the proportion of shares to be held, in order to obtain information on the company’s directors and shareholders. In a similar vein, the applicant must enter the required information for the company secretary.
It is necessary to pay the required CAC registration fee (which varies according to the kind and size of the company) and stamp duty.
Documents to be Obtained at Conclusion of Registration
Upon successful completion of the company registration in Nigeria, the applicant will get the following documents:
- Incorporation Certificate, which shall include the tax identification number (TIN) of the company.
- Application for Registration Status of the company, which shall reflect the registered address, name of director(s), name of shareholder(s), and secretary of the company (if applicable) at the date of registration
- Memorandum and Articles of Association (MEMART) of the company
Conclusion
The firm’s Certificate of Incorporation will be accessible for download once the company registration process is complete and the CAC has given its approval. Depending on the circumstances, registering a corporation can be done in two to seven working days if there are no unforeseen obstacles or delays. Depending on the type of business to be conducted and whether or not foreigners are involved in the company, a company’s size or share capital will vary. A specific number of authorized share capital must be registered for some businesses. In order to determine the suitable shareholder threshold needed for a particular organization, it is crucial to speak with a corporate lawyer or an accredited agent.